The Pr Commissioner of Income Tax Vs M/S I G Petrochemicals… — Income Tax | Karnataka HC (2025)

The Pr Commissioner of Income Tax Vs M/S I G Petrochemicals… — Income Tax | Karnataka HC (2025)

What the court decided

AI extract

Outcome

No relief on merits; no substantial question of law was framed or answered. Both appeals and the application for condonation of delay in ITA No.79/2025 stand disposed of, in view of the pending Apex Court proceedings in Diary No.49109/2024.

Issue for consideration

Whether these Revenue appeals, filed with only proposed substantial questions of law while the larger question (with the outcome in W.P.No.20579/2022 [T-IT] and Writ Appeal No.1373/2023 [IIT]) is pending before the Apex Court in Diary No.49109/2024, should be disposed of at this stage. +1 more

Court's answer

In light of the joint submission that if the appellants succeed in the pending petition before the Apex Court the Apex Court will modulate the outcome, the appeals are disposed of and the application for condonation of delay in ITA No.79/2025 stands disposed of.

Ratio / Principle

The application for condonation of delay in ITA No.79/2025 stands disposed of; the corresponding application in ITA No.80/2025 had already been allowed by this Court on 12.08.2025.

Detailed headnote1 paragraphs

High Court of Karnataka, Bengaluru (B M Shyam Prasad and T.M.Nadaf JJ.; oral judgment per B M Shyam Prasad J.), 12.11.2025 — ITA No.80/2025 c/w ITA No.79/2025 (NC: 2025:KHC:45932-DB): Revenue appeals under Section 260A of the Income Tax Act, 1961 by the Pr. Commissioner of Income Tax Central and DCIT against M/s I G Petrochemicals Ltd, praying to set aside the ITAT Bengaluru orders — dated 30.05.2024 in M.P.No.47/BANG/2022 in ITA No.1317/BANG/2018 (AY 2006/2007) and dated 21.01.2022 in ITA No.1317/BANG/2018 (AY 2006-07) — and to confirm the Appellate Commissioner's order confirming the DCIT, Central Circle 2(4) order. The appeals carried only proposed substantial questions of law because the larger question, with the outcome in W.P.No.20579/2022 [T-IT] and Writ Appeal No.1373/2023 [IIT], is pending before the Apex Court in Diary No.49109/2024. On the joint submission (respondent's counsel citing Commissioner of Income Tax v. Mahindra & Mahindra Ltd, (2018) 404 ITR 0001 SC) that the Apex Court would modulate the outcome if the Revenue succeeded, the Court disposed of both appeals and the condonation-of-delay application in ITA No.79/2025; condonation in ITA No.80/2025 had been allowed on 12.08.2025. No substantial question was decided; no merits adjudication.

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NC: 2025:KHC:45932-DB ITA No. 80 of 2025 C/W ITA No. 79 of 2025

HC-KAR

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 12^TH DAY OF NOVEMBER, 2025

PRESENT

THE HON'BLE MR. JUSTICE B M SHYAM PRASAD

AND

THE HON'BLE MR. JUSTICE T.M.NADAF INCOME TAX APPEAL NO. 80 OF 2025 C/W INCOME TAX APPEAL NO. 79 OF 2025

IN ITA No. 80/2025

BETWEEN:

THE PR. COMMISSIONER OF INCOME TAX CENTRAL, 3^RD FLOOR, C.R. BUILDING, QUEENS ROAD, BENGALURU-560 001.

Digitally Signed by REKHA R Location : High Court of Karnataka

THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-3(1)(1), PRESENT ADDRESS DCIT, CENTRAL CIRCLE-2(4), 3^RD FLOOR, C R BUILDING QUEENS ROAD, BENGALURU-560 001.

…APPELLANTS

(BY SRI. Y V RAVIRAJ.,ADVOCATE)

AND:

M/S I G PETROCHEMICALS LIMITED D-4, JYOTHI COMPLEX, 134/1, INFANTRY ROAD, BENGALURU-560 001.

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NC: 2025:KHC:45932-DB ITA No. 80 of 2025 C/W ITA No. 79 of 2025

HC-KAR

REP. BY ITS MANAGING DIRECTOR.

…RESPONDENT

(BY SRI. S. GANESHAN., SENIOR ADVOCATE A/W SMT. JINITA CHATTERJEE., ADVOCATE FOR SRI. S PARTHASARATHI.,ADVOCATE)

THIS ITA IS FILED UNDER SECTION 260 A OF THE INCOME TAX ACT, 1961, PRAYING TO ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, BENGALURU, IN MP.NO.47/BANG/2022) IN ITA NO.1317/BANG/2018) DATED 30.05.2024 FOR ASSESSMENT YEAR 2006/2007 ANNEXURE A AND CONFIRM THE ORDER OF THE APPELLATE COMMISSIONER CONFIRMING THE ORDER PASSED BY DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 2(4), BENGALURU.

IN ITA NO. 79/2025

BETWEEN:

THE PR. COMMISSIONER OF INCOME TAX CENTRAL, 3^RD FLOOR, C.R. BUILDING, QUEENS ROAD, BENGALURU-560 001.

THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-3(1)(1), PRESENT ADDRESS DCIT, CENTRAL CIRCLE-2(4),

3^RD FLOOR, C R BUILDING

NC: 2025:KHC:45932-DB ITA No. 80 of 2025 C/W ITA No. 79 of 2025

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HC-KAR

QUEENS ROAD, BENGALURU-560 001.

...APPELLANTS

(BY SRI. Y V RAVIRAJ.,ADVOCATE)

AND:

M/S I G PETROCHEMICALS LIMITED D-4, JYOTHI COMPLEX, 134/1, INFANTRY ROAD, BENGALURU-560 001. REP. BY ITS MANAGING DIRECTOR.

...RESPONDENT

(BY SRI. S. GANESHAN., SENIOR ADVOCATE A/W SMT. JINITA CHATTERJEE., ADVOCATE FOR SRI. S PARTHASARATHI.,ADVOCATE)

THIS INCOME TAX APPEAL IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, PRAYING TO ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME-TAX APPELLATE TRIBUNAL, BENGALURU IN ITA NO.1317/BANG/2018, DATED 21.01.2022 FOR ASSESSMENT YEAR 2006-07 ANNEXURE-A AND CONFIRM THE ORDER OF THE APPELLATE COMMISSIONER CONFIRMING THE ORDER PASSED BY DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE - 2(4) BENGALURU.

THESE APPEALS COMING ON FOR ORDERS, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD and HON'BLE MR. JUSTICE T.M.NADAF

4 - NC: 2025:KHC:45932-DB ITA No. 80 of 2025 C/W ITA No. 79 of 2025

HC-KAR

ORAL JUDGMENT

(PER: HON'BLE MR. JUSTICE B M SHYAM PRASAD)

Mr. Y.V. Raviraj, the learned Senior Standing

Counsel for the appellants, submits that these appeals are filed with the proposed substantial questions of law because the larger question, with the outcome in writ petition in W.P.No.20579/2022 [T-IT] and in writ appeal in Writ Appeal No.1373/2023 [IIT], is pending adjudication before the Apex Court in Diary No.49109/2024 and that this Court may dispose of these appeals as also the application filed for condonation of delay in ITA No.79/2025 with the observation that this disposal will not prejudice the appellants in the event there is a favourable outcome in the pending petition with the Apex Court.

Mr. S. Ganeshan, the learned Senior Counsel for the respondent, submits that this Court must observe that the present appeals must constitute abuse of process and that these appeals are

5 - NC: 2025:KHC:45932-DB ITA No. 80 of 2025 C/W ITA No. 79 of 2025

HC-KAR

untenable even otherwise because, after the orders of the writ Court in W.P.No.20579/2022 [T-IT], the Tribunal has reconsidered the miscellaneous petition in No.47/Bang/2022 in the light of the observations by this Court, which allows the relief to the assessee. The learned Senior Counsel emphasizes that though a reference to the petition in Dairy No.49109/2024 is now being made, the appellants cannot dispute that the Revenue has not taken any measure to ensure that the petition is disposed of.

However, ultimately it is submitted in unison that if the appellants succeed in the petition, the Apex Court will modulate the outcome with Mr.S.Ganeshan emphasizing that it would be very unlikely that the Apex Court will, in view of its decision in Commissioner of Income Tax v. Mahindra & Mahindra Ltd [reported in (2018) 404 ITR 0001 SC] . In the light of this submission, the appeals are disposed of and the application for

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NC: 2025:KHC:45932-DB ITA No. 80 of 2025 C/W ITA No. 79 of 2025

HC-KAR

condonation of delay in ITA No.79/2025 stands disposed of. The application for condonation of delay in ITA No.80/2025 has been allowed by this Court on 12.08.2025.

Sd/(B M SHYAM PRASAD) JUDGE

Sd/(T.M.NADAF) JUDGE

SA ct:sr